Arbitrary Aardvark

Thursday, June 18, 2015

The question of whether Greece should stay inside the euro or leave is a tough one-and is the subject of our cover editorial this week. It is still my view that both Greece and the rest of the euro zone would be better off if they stayed in, but that will demand both more reform from the Greeks and debt reduction from the creditors. Grexit is not an easy solution. It will devastate the Greek economy in the short term; even in the longer run the gains from a big devaluation are easily exaggerated. Greece will only prosper if it frees up its still-rigid economy and overhauls its clientilist state, whether or not it is inside the euro.- editor of the economist